3–month LIBOR, repriced on a quarterly basis. Last repriced on 15th March 2019 at 0.85% pa. The total expected rate equals 3.19% annualised assuming auto reinvestment of all interest over a 1-year period.

Your capital is at risk.

How it works

In a nutshell

Accessing your money early

Minimising risk

In a nutshell

Make more of your money

When you make any investment, we use our peer-to-peer platform to direct your funds into the buy-to-let mortgages of responsible borrowers.

Select your preferred rate and make an investment, via your account.

We divide your investment across multiple buy-to-let mortgages, so that the interest you earn does not rely on the repayment of any single one.

Borrowers make monthly repayments on their Landbay mortgage. Once we receive it, we pay your interest directly into your investment account.

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Accessing your money early

Accessing your money early

At Landbay, your funds are matched to mortgages for a period of up to 30 years. However, for most of our mortgages, the average expected duration is 4 years.

We understand that, within this time, things can change, meaning you might wish to withdraw your investment early. That's why we provide you with the opportunity to sell your investment on the secondary market, subject to the availability of secondary investors. As an estimate, this typically takes a few weeks. However, please note we cannot guarantee that we will always be able to sell your investment. There may be a small fee associated with Fixed rate investments. Click here to find out more.

Rental Market Resilience

Landbay enables investors to invest in buy-to-let mortgages, backed by the resilience of the UK rental market. Each investment acts as a mortgage contract with the borrower.

Buy-to-let mortgage investments are one of the lowest risk investment options in UK peer-to-peer lending. This is because all investments in this sector are backed by the resilient UK rental market, providing investors with a natural advantage in growing successful returns. Our affordability tests ensure that, in all cases, rental payments cover 125% of mortgage payments. However, as with any investment, your capital is at risk. To minimise this risk, we take the precautions listed alongside and continually improve our processes to ensure that your investment is as well protected as possible.

Safeguards on Interest Repayments

Safeguards on Interest Repayments

At Landbay, we do not offer unsecured consumer loans, small business loans or high-risk mortgages for property development, bridging or commercial real estate purposes.

In the unlikely case of any late payments, the matter will be immediately pursued by our mortgage administration provider and the power to receive rent from all tenants concerned will be directly transferred to us. We will then pass on interest repayments to investors as normal. In the event of a formal default, Landbay’s Security Trustee will repossess the property on behalf of the investors, in order to expedite the return of capital. See our actual and predicted Default Rates .

Diversification

Diversification

In order to best protect your investment, we will always divide your funds across multiple mortgages, so that the interest you earn does not rely on the repayment of any single one.

Specialist Underwriting

Specialist Underwriting

At Landbay, our expert, tailored and thorough underwriting service works alongside our diversification process, so that you can be sure that your money is in the best hands. We examine each borrower application on a case-by-case basis and include comprehensive identity, fraud and credit checks, due diligence on the underlying property and mortgage affordability, should investment rates change.

Moreover, we only consider applications recommended to us via our network of leading mortgage broker partners, meaning that all of our borrowers are experienced and credit-worthy landlords.

Reserve Fund

Reserve Fund

We know that, sometimes, things can happen beyond our control, so a percentage of our income is always set aside, as our Reserve Fund, ready to tackle any unwanted surprises.

Our Reserve Fund is a discretionary fund, derived solely from our borrower platform and product fees. If a borrower defaults and there is a shortfall which means that, after selling the property, its value falls below that of the total value of any remaining capital and interest owed to you as an investor, then a claim will be made to cover the additional amount on the Reserve Fund.

Please note, the amount we hold in our Reserve Fund is based on the results of independent stress testing and our predicted outlook during a severe recession. Landbay does not guarantee that a claim will be approved nor that there will be sufficient funds available to cover.

0.6%Size of Funds

0.1%Anticipated defaults

0.0%Actual defaults since 2014

Past performance does not guarantee future performance.

Investor Fund Segregation

Investor Fund Segregation

Should Landbay cease trading, all mortgages will continue to exist and be managed, with minimal disruption, through to repayment, by our Security Trustee and loan administration provider.

For your protection, Landbay also holds non-invested funds on behalf of investors in segregated bank accounts with Barclays PLC and Natwest, both of which are FSCS protected up to £75,000. They do not form part of our assets and would not be available to creditors in the event of our insolvency.

Secured Against UK Property

Secured Against UK Property

At Landbay, all our mortgages are secured against UK property, specifically buy-to-let property, with a maximum LTV of 80%.

The rental market in the UK has shown resilience and strength over time and through financial cycles, and this is a key reason rental property is our chosen underlying asset class.

Unlike other peer-to-peer platforms, we do not offer unsecured consumer loans, small business loans or offer higher-risk mortgages for property development, bridging or commercial real estate purposes.

Independent Advice

Independent Advice

Please note, investors and borrowers with Landbay are not covered by The Financial Services Compensation Scheme (FSCS.) Landbay offers investors the opportunity of lending, on a secured basis, directly against rental property. As such, all mortgages should be considered as mortgage investments, not deposits.

We recommend that you seek independent financial advice if you are in any doubt as to whether lending via Landbay is suitable for you.

Investment calculator

Select your investment amount and preferred rate to work out how much you could earn.

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Your capital is at risk. All calculated returns are based on current available rates, assuming that all interest earned is auto-reinvested and are not guaranteed predictions of interest repayments.

Make your investment

Earn interest within 24-hours

You will begin earning interest within 24-hours of your funds being matched to a mortgage. This will be paid monthly, direct to your investment account. Choose whether to withdraw your interest or automatically reinvest it to benefit from compounding.